Logistics plays a significant role in the economy. Not only businesses depend on lorry services, cargo ships, planes, and railroads to transport their goods and services, but also the market that rely on these products and services.
From the express delivery service that hands your parcel from an online shop to imported metric tonnes of crops arriving at the port– all of it uses logistic services.
Poor logistics management hinders and even paralyses an efficient supply chain in the market. In reality, inefficient logistic servicesimpact the economy itself. It also cost suppliers and buyers huge expenses.
Here are the ways to improve your logistics management.
5 Ways To Make Your Logistics Management More Effective
Logistics is crucial in a business. Logistics takes care of the shipping, receiving, storing, and ensuring an efficient supply chain. Whether it be in-house logistics orthird party logistics in Malaysia, it is only necessary for a business to have effective logistic services to help the company grow, expand, and gain the upper hand and advantage against the competitors.
Concrete Planning
Logistics consists of coordination between the transport services, warehousing and storage, delivery and procurement. The logistic servicesbecome more complicated if the procurement of the business is on a much larger scale. Meaning it may involve overseas transportation and storage.
Planning starts with manufacturing. The traffic of your goods can determine how many products you should manufacture, particularly if you have limited storage facilities. Determining the right amount of stock and efficient warehouse management ensure the balance of the product flow or traffic.
Apart from warehouse management, the business should plan out the transportation. Time is the number one challenge for a logistic company in Malaysia.Many problems that may arise along the way and may cause a delay in procurement. Logistic services ensure that the goods are delivered on time to prevent tripping the supply chain.
Another part of the planning is forecasting. Forecasting problems concerning the products, stock management, transportation, and time allows the logistic company in Malaysia to prepare a backup plan.
Incorporating Technology
Many technologies today are invented to help streamline and optimise every aspect of logistics, from inventory to transportation. Businesses and logistic services should take advantage of technology and automation in the industry to speed up the flow in the supply chain.
In reality, technology today, especially artificial intelligence, is faster, more accurate, and cost-effective than manual labour. Technology helps businesses to meet the increasing demands in the market.
Firstly, technology is used in warehouse and inventory management. A logistic company in Malaysia uses advanced devices and automated systems like automated scans and radio frequency identification to track the stocks in the inventory in real-time. The inventory information can be accessed fast, remotely and safely online, improving the visibility of the supplies in the warehouse.
Secondly, technology reduces the labour demand for sorting, packing, and organising the stocks in the warehouse. There are machines and equipment that automate the system, speeding up the process.
Lastly, a logistic company in Malaysiaalso uses GPS trackers and a fleet management system to monitor and optimise the transportation area, especially the express delivery service. From optimising routes to real-time monitoring of the fleet movement, down to ensuring maintenance of the vehicles, fleet management software is highly reliable.
Sufficient Ergonomic Warehouse and Inventory Management
Another way to make storage and logistics efficient, especially for businesses with in-house logistics, is maximising the warehouse facility and inventory management.
Firstly, the logistic company in Malaysia should have warehouse facilities situated strategically in different places. Having warehouse facilities in particular areas reduces the transportation cost and time.
Secondly, the environment of the warehouse facility should be suitable for the supplies they store inside. For example, perishable products should be supplied in a cool or, as much as possible, a warehouse with a refrigerated facility to avoid spoilage. Crops and agricultural products should be stored in a warehouse with low humidity levels to prevent rotting. An appropriate environment preserves the quality, extends life, and prevents damages to the product.
Lastly, if the logistic services have a limited warehouse, they can maximise the space by utilising the space. Using smartly and ergonomically designed floor plans for space management help minimise foot traffic in the warehouse, allow the manufacturers to store more products, and speeds up the receiving and dispatching processes. Ergonomically designed warehouses optimise warehouse movement and increase productivity.
Training The Staff
Since the staff are still the main brain and power in warehouse and transportation management, it is only reasonable for them to be efficient, flexible, and adaptable.
Human error is one of the reasons for delays and issues in logistic services. After incorporating technology in the system, training the staff on how to use it and other modern strategies will improve the streamlining and optimisation of the logistic processes.
Implementing Standard Operating Procedures will also minimise human errors and eliminate the slack culture in the team. Regular KPI monitoring helps the management to craft strategies to boost the productivity of the staff more.
The SOP and KPI help the team and the entire management evaluate their performance and achieve their united goals.
Get A Third Party Logistics
A growing business has a dire need for an efficient logistics system. Companies are often left with two options. The first is to expand their logistics team by building more storage facilities, purchase vehicles for flexible transportation systems, buy software, equipment, and machines to help streamline and optimise inventory management, and hire more staff.
The second option is hiring a third party logistics. Your logistic company in Malaysia provides the necessary vehicles, storage facilities, inventory and fleet management, and labour for your operations.
Additionally, third party logistics have global networks that make importation and exportation easy. They may also have other services you would highly benefit from, like the LCL shipment service.
Logistics is a complicated area to improve. Improvement alone requires you to pull out some of your resources. If you think your business is still incapable of doing so, you can try hiring third party logistics.
Benefits of Hiring Third Party Logistics Services For Your Business
Many businesses, from the leading to the budding ones, hire a third-party logistics company in Malaysia to help them with the completion of the supply chain. The services may begin from packaging of the goods to storage and warehousing, down to transportation.
Companies expand their market base without investing in in-house logistics. They opt for partnering up with a third party logistics company instead. Here are the benefits you can get from the 3PL.
Cost-Effective
The biggest advantage of hiring a third party logistics (3PL) is its cost-effectiveness. Upfront, signing up a contract with a logistic company in Malaysiaseemed too expensive. However, businesses save money in the long run.
Firstly, the business saves money from building warehouse facilities, purchasing vehicles, equipment and machinery, and hiring more staff. In addition to the savings is the maintenance expenses for the facilities and vehicles.
Secondly, the expenses due to human errors and issues due to inefficient in-house logistics will also be reduced. Third-party logistics companies are highly particular with the quality of their work, providing their staff with in-depth training, from warehouse management to the express delivery service.
Access To Resources and Global Network
Another thing to take advantage of third party logistics is their resources and global network. Some logistics companies have access to warehouses in strategic ports abroad. Usually, the freight and storage costs in these warehouses are lower.
Apart from the facilities overseas, they may also have passage to efficient and effective international routes, making transportation faster. Their connections also ensure the quality of your goods is well preserved under their care.
For an in-house logistics service, building a global network is a lot of work and can be costly. It also serves as an obstruction for business expansion overseas.
Industry Expertise and Experience
One of the best reasons why you can rely on a 3PL is because of its expertise and experience in the industry. Third party logistics companies know and adhere to the rules and regulations and the standard practice in the industry.
They stay up to date and have access to the latest technology, mechanics, processes, and strategies to improve the logistics process, from packaging service to express delivery service.
Larger logistic companies in Malaysia also have the expertise and experience of overseas logistics, offering your business a smoother international trade.
Your businesses can get a hand with the industry expertise and experience, advanced technology, and global network without investing a lot.
Drastically Improve Competitiveness
Taking advantage of the benefits of your third-party logistic company in Malaysia boosts your business operation’s competitiveness in the market. You can get the upper hand against your rival companies by having a well-coordinated supply chain.
Furthermore, as your 3PL partner takes care of the logistics, businesses can now focus on the areas of the operations that need more attention and improvement. In a way, it also boosts your competitiveness, particularly if you are focusing on core areas of your business that perform a critical function.
Apart from saving you money, partnering up with logistic services saves you a lot of time as well.
Provides You Flexibility and Scalability
One of the risks of investing in an in-house logistic service is the unstable market. The demand in the market fluctuates continually. Businesses depend on the market forecast whether or not to pump up their in-house logistics. Other companies opt for the safer choice– third party logistics.
The best quality of third-party logistic services is its scalability and flexibility. When the sales are down; and the demand is low, 3PL can downsize their service, from the labour needed to the warehouse management and transportation. On the flip side, they can upscale their resources when the sales are up; and demand is high.
It is better to hire a logistic company in Malaysia instead of investing in building warehouses and purchasing vehicles that will only remain idle or lay off employees during the low demand.
Truly, partnering up with a 3PL is advantageous for a business. It can even be the key to expansion as it helps create a broader network and penetrate a greater market. If you have decided to hire a logistic company in Malaysia, here are the top qualities you should look for.
Characteristics of a Reputable Logistic Company in Malaysia
Sealing a contract with a reputable third-partylogistic company in Malaysia is truly a gold find. Your business is ensured with its quality of service. However, there are many logistic services available in the country. Finding the right one is the key to a smooth partnership. Here are the characteristics of reputable logistic services.
Technology-Driven
The battleground for efficient warehouse and inventory management and express delivery service is the technology. Many logistic companies gain the upper hand from their rivals by automating their logistic services. You can also take advantage of the technology in their service.
Custom Needs
Businesses have particular needs when it comes to logistics. For example, those who produce perishable food may require a refrigerated warehouse facility and chiller lorries for transportation. Make sure that your chosen logistic company in Malaysia can meet your business’s custom needs.
Time-Oriented
Probably the pinnacle of customer service in logistics is timeliness. Delays in the service cost a lot of money on the end of the supplier and headaches on the buyer’s part. Overstay rates in ports and even the gas you spend on traffic roads cost you money.
Reasonable Rates
Like what is mentioned earlier, logistic services can downsize or upscale their service depending on the current demand and the need of your business. Similarly, the price of the service should be adaptive to these changes.
Good Communication
Communication is the key to long-standing partnerships in business. Logistics involve a lot of coordination from both parties, and it is only necessary that the company and 3PL have open communication and transparency.
Logistics is one of the backbones of a business and plays a fundamental role in the supply chain. It can set the macro and micro economy into either drive or nosedive. It is why efficient logistic services are essential.
Open doors and be connected with Hock Cheong. Hock Cheong provides logistic services in Malaysia. Visit Hock Cheong today.
